Reuters reports how Greece will lose its sovereignty:
Germany is pushing for Greece to relinquish control over its budget policy to European institutions as part of discussions over a second rescue package, a European source told Reuters on Friday.
The source added that under the proposals European institutions already operating in Greece should be given “certain decision-making powers” over fiscal policy.
Under the German plan, Athens would only be allowed to carry out normal state spending after servicing its debt, the FT said.
http://www.reuters.com/article/2012/01/27/us-eurozone-greece-germany-idUSTRE80Q1ZF20120127
Drumroll…
“It is clear that talks on how to help Greece get back on the right track are continuing,” the source said.
It must be great to have friends like us.
(Update)
The document is btw entitled Assurance of Compliance in the 2nd GRC Programme.
Greece has of course rejected this for now. AFP:
[Greek Education Minister Anna Diamantopoulou] poured scorn over the idea, saying it was the “product of a sick imagination.”
http://www.google.com/hostednews/afp/article/ALeqM5g04xnoQUYI8IQCXM4TkFi5gm2kyA
(Update 2)
After the Greek rejection, the German government is coming out very open with their demands for a Greek surrendering. Reuters:
Philipp Roesler became the first German cabinet member to openly endorse a proposal for Greece to surrender budget control after Reuters quoted a European source on Friday as saying Berlin wants Athens to give up budget control.
It is of note that Roesler said this to the Bild, a tabloid traditionally used to spread and strengthen conservative opinion.
A government source in Berlin said Germany’s proposal was aimed not just at Greece but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.
The European Commission, the executive arm of the 27-country bloc, said it wanted the Greek government to maintain autonomy.
http://www.reuters.com/article/2012/01/29/us-eurozone-germany-greece-idUSTRE80S0HO20120129